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Although most people make it seem so, all is not lost if you have no credit history to your name. With proper planning and sticking to the points on your check list you can build it. If you do not have any credit history to start with getting mortgage and car loans would prove difficult too and even if you do, the monthly payments you will need to make will be astronomical. To start with you can find a home or apartment for rent without actually having the landlord to do a credit check.
Most landlords go with the gut feeling, so if you make a good impression, the chances of paying for a credit report about you is very less. You can approach the landlord through a real estate agent, which will ensure that you have someone to vouch for you and a good chance to not have a credit check done.
Getting recommended by someone who has a good credit history is also a very good idea to get the credit check waived. This is also the reason why even most landlords want a co-signor which will increase the chances of you getting the home without a credit check done. Having your guardian or parents sign as a co-signor will give the landlord enough confidence to not have to bother about your credit score or credit history at all. However, you must keep in mind that you are using another person's credit and hence have to be careful. The landlord can go after the co-signor legally if you default on your monthly rents or damage the house in any way.
Once you have a house and hence a proper address, you should try to get the telephone bills, internet bills and everything else possible in your name at your address. This will start your credit history and by making regular payments every month you can actually build a credit. You also need to check in your neighborhood if there is a supermarket or a gas station which gives out credit cards even if is prepaid.
If you can ensure that these places actually report to the credit bureau, then you can gradually build your credit history. Getting an account in your name will also help. Until you get at least a fair credit rating, which you should know by regularly checking your credit report, you shouldn't go for a credit card or a car loan. The reason is that the interest rate will be very high in some cases or your application is likely to be rejected. This should be avoided as much as possible because every time your application is rejected you bring down your credit score further.
Having a credit score is important and trying to take it above 700 should be your main focus. This will help you get credit cards with better offers. If you are a student, you will get student loans at lower interest rates and more offers too.
